AsiaMarkets: New investment trusts boost Tokyo shares

MarikoAndo

TOKYO (CBS.MW) -- The launch of new investment trust funds in Tokyo pumped fresh funds into the market and pumped up share prices Friday. While the Nikkei Average broke briefly above the 19,500 mark, other indexes in the region were also extended gains.

The benchmark Nikkei rose 225.06 points, or 1.17 percent, to 19,434.78 -- its second best close of the year. Half a dozen new investment trusts (mutual funds) targeted high-tech and telecommunications stocks. Bank shares rallied a second day.

The broader TOPIX Index of first-section stocks ended almost a percent higher at 1,702.61 points, and volume increased to 605.7 million shares from 567 million the previous day.

In currency markets, the dollar fell further to 104.68 yen, down from 105.00 yen in New York overnight and 105.65 yen Thursday in Tokyo.

In Japan, technology and telecommunications shares remained strong despite Wall Street's weaker close overnight. "It seems like Japan's markets are starting to be less affected New York market," said Yukio Takahashi, an equity department manager from Wako Securities. "New investment trusts also are cheering certain sectors."

Telecommunications shares were mixed. Mobile phone unit NTT DoCoMo
nmcny
gave up early gain by slipping 70,000 yen to 3.66 million yen. The company announced Thursday that it and Matsushita Communication Industrial Co.would set up a joint venture early next month to distribute music to mobile phone users. See Internet Daily Asia.

But other companies in the group rose, with NTT Data up 40,000 yen to 2,01 million yen and parent NTT
NTT, -0.97%
adding 20,000 yen to 1.64 million.

Banks were among the most actively traded shares. Volume leader Fuji Bank
fujpy
climbed 87 yen to 1,099, while Dai-Ichi Kangyo Bank
daiky
added 71 yen to 1,042. Bank of Tokyo-Mitsubishi
MBK, +0.60%
was up 24 yen to 1,415. "Investors started to think that the banking sectors have been undervalued in recent sessions," said Wako's Takahashi.

Shares of Suruga Bank Ltd. zoomed again -- up 300 yen, or 18.66 percent, to 1,908 -- on Thursday's news that the regional bank and Softbank will start an online banking venture.

Shares of Softbank climbed 5,000 yen, or 5.3 percent, to 99,900 yen. The company announced Thursday that it would team up with Lehman Brothers in a venture for online trading of Japanese bonds. See full story.

On the over-the-counter market, shares of Yahoo Japan stood at a bid-only 103 million yen.

Shares of New World Development Co. gained 5.3 percent to HK$14.85 following a local media report that Australia's telephone firm Davnet Ltd. is in talks to to buy a 75 percent stake in New World Telephone Ltd.

Australia's market gained on the back of weaker-than-expected inflation data, which eased investors fears of a possible domestic interest-rate hike in the near future. The benchmark All Ordinaries Index added 8.7 points, or 0.28 percent, to 3,092.10.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.